Valuation – S&P 500 Forward P/E Multiple Even with valuations running rich, the S&P 500 trades close to fair value. Solid earnings growth and a resilient economy could keep the rally alive. Image: Goldman Sachs Global Investment Research
Valuations – S&P 500 12-Month Fwd P/E Multiple – Top 5 Largest Stocks vs. Other 495 Stocks Valuations aren’t as stretched as in past bubbles. The U.S. market looks more balanced, with the top five stocks trading at a moderate premium, while the rest of the market trades at valuations near their highest since 2000.…
S&P 500 Valuation Multiples With valuations lofty and expectations running high, U.S. stocks look exposed if earnings or the economy disappoint. Image: Real Investment Advice
Scatter Plot Returns of P/E Multiples and S&P 500 1-Year Returns The weak link between the P/E ratio and the S&P 500’s one-year performance shows why investors are better off keeping their eyes on the long game, not short-term valuations. Image: Carson Investment Research
Valuation – S&P 500 Forward P/E Multiple The five largest S&P 500 stocks are trading well above their historical valuation norms—reflecting strong investor confidence in their earnings power and growth prospects—yet their valuations remain below previous peak levels. Image: Goldman Sachs Global Investment Research
Valuation – Equal-Weight S&P 500 P/E Multiple According to Goldman Sachs, the equal-weight S&P 500 P/E multiple is currently 13% above fair value. This suggests that stocks in the S&P 500 Equal Weight Index may be relatively more expensive compared to their earnings potential. Image: Goldman Sachs Global Investment Research
S&P 500 Valuation Matrix (12-Month Forward EPS and P/E Multiple) According to Morgan Stanley, U.S. equity market gains in 2024 may stall due to high forward multiples and ambitious earnings forecasts for the next 12 months. Image: Morgan Stanley Wealth Management
FY2 P/E Multiple of S&P 500 Top and Bottom Valuation Quintiles The valuation gap between high and low valuation U.S. stocks remains elevated, presenting potential opportunities for value investors. Image: Goldman Sachs Global Investment Research
U.S. Labor Market – Multiple Jobholders, Primary and Secondary Jobs Full Time More Americans are taking on second jobs as the cost of living increases. Image: The Daily Shot
S&P 500 Index Performance During Periods of Multiples Fed Rate Hikes Historically, Fed rate hikes cycles are not a threat to the S&P 500 Index. Image: LPL Research
S&P 500 Valuation Multiples S&P 500 valuation multiples remain stretched and well above averages. Image: Goldman Sachs Global Investment Research